Income Beginner: Introduction to Deposit Accounts

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1.
The simplest kind of deposit account to set up and maintain is a _______.
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Passbook account. A passbook account is easy to start, offers immediate access to funds, and requires low minimum balances.
2.
High-balance deposit accounts typically charge penalties for early withdrawal.
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False. Your money is always available.
3.
Deposit accounts can be appropriate for investors with low risk tolerance.
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True. The high degree of security they provide make deposit accounts an effective alternative for those who can't afford to lose their capital.
4.
Asset management accounts make tax preparation easy.
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True. Combined statements listing all your financial transactions make it easy to find the information you need to prepare your return.
5.
All of the following are advantages of asset management accounts, except _______.
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Low minimum balances. Low minimum balances are not a feature of asset management accounts.